WASHINGTON (AP) 鈥� Undeterred by a stock market collapse that has continued for days, President threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war.
Trump's threat, which he delivered on social media, came after China said against U.S. tariffs .
鈥淚f China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,鈥� he wrote on Truth Social. 鈥淎dditionally, all talks with China concerning their requested meetings with us will be terminated!鈥�
Asked later Monday if he would consider a pause on tariffs that have threatened the global economy, Trump said, 鈥淲e're not looking at that.鈥� The U.S. president said he was open to negotiations 鈥渋f we can make a really fair deal and a good deal for the United States.鈥� Trump added that it's possible to have both negotiated settlements with other countries and permanent tariffs.
If Trump implements his new taxes on imports from China, U.S. tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper partnerships with other trading partners.
Trump faces mounting pressure in the financial markets and from business leaders to backtrack on his tariff ambitions, yet he has shown no signs of reversing course or finding a message to calm panicked markets. The White House said Monday that Trump would veto a Senate bill that would mandate congressional approval for new tariffs, a bet that the critical mass of Republican lawmakers will loyally back his taxes on imports despite the economic and political chaos being created.
As of midday on Monday, the Dow Jones Industrial Average had fallen 750 points, or 2%. The S&P 500 had slumped 1.5%, and the Nasdaq composite was off 1.2%. The drop in the markets briefly reversed in the morning after a false report that Trump was considering a pause in his tariff plans. The frantic trading, which sent stocks spiking before plummeting again, showed how investors are operating on a hair trigger and are eager for any sign of encouraging news.
The White House account said it was 鈥渇ake news鈥� that Trump was considering a pause. The Republican president has remained defiant despite fears that he could be pushing the U.S. toward a recession, insisting that his tariffs are necessary for rebuilding domestic manufacturing and resetting trade relationships with other countries.
鈥淏e Strong, Courageous, and Patient, and GREATNESS will be the result!鈥� he wrote on Truth Social.
He accused other countries of 鈥渢aking advantage of the Good OL鈥� USA鈥� said 鈥渙ur past 鈥榣eaders鈥� are to blame for allowing this.鈥� Trump also called on the Federal Reserve to lower interest rates. On Friday, Federal Reserve Chair Jerome Powell warned that the tariffs , and he said 鈥渢here鈥檚 a lot of waiting and seeing going on, including by us,鈥� before any decisions would be made.
Investors expect the U.S. central bank to cut its benchmark interest rates at least four times by the end of this year, according to CME Group's FedWatch, a sign that concerns about inflation will be eclipsed by fears of layoffs and a shrinking economy.
Trump spent the weekend in Florida, arriving on Thursday night to attend a Saudi-funded tournament at his Miami golf course. , his private club in Palm Beach, and golfed at two of his properties nearby.
On Sunday, he posted a video of himself hitting a drive, and he told reporters aboard Air Force One that evening that he won a club championship.
鈥淚t鈥檚 good to win,鈥� Trump said. "You heard I won, right?鈥�
He also said that from his tariffs despite the turmoil in the global markets.
鈥淪ometimes you have to take medicine to fix something," Trump said.
Goldman Sachs issued a new forecast saying a recession has become more likely even if Trump backtracks from his tariffs. The financial firm said economic growth would slow dramatically 鈥渇ollowing a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed."
European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are elsewhere.
Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade negotiations. He complained on Truth Social 鈥渢hey have treated the U.S. very poorly on Trade鈥� and 鈥渢hey don鈥檛 take our cars, but we take MILLIONS of theirs.鈥�
Ishiba said he told Trump that he's 鈥渟trongly concerned鈥� that tariffs would discourage investment from Japan, which has been the world鈥檚 biggest investor in the U.S. in the past five years. He described the situation as a 鈥渘ational crisis鈥� and said that his government would negotiate with Washington to urge Trump to reconsider the tariffs.
White House trade adviser Peter Navarro suggested countries would need to do much more than simply lower their own tariff rates to reach deals, saying they would have to make structural changes to their tax and regulatory codes.
鈥淟et鈥檚 take Vietnam," he said on CNBC. 鈥淲hen they come to us and say, 鈥榃e鈥檒l go to zero tariffs,鈥� that means nothing to us because it鈥檚 the non-tariff cheating that matters.鈥�
On Monday, to the White House to celebrate their World Series victory. He also , who said his country would remove tariffs and other trade barriers in the aftermath of Trump putting 17% taxes on imports from Israel.
鈥淚srael can serve as a model for many countries who ought to do the same,鈥� Netanyahu told the U.S. president.
Trump said he appreciated 鈥渧ery much鈥� what Netanyahu had said about tariffs. But when asked if he would remove the tariffs, Trump said 鈥渕aybe not鈥� because of the aid that the United States provides to Israel. The U.S. had a $7.4 billion trade deficit in goods last year with Israel, according to the Census Bureau.
Trump has strived for a united front after the chaotic infighting of his first term. However, the economic turbulence has exposed some fractures within his disparate coalition of supporters.
Bill Ackman, a hedge fund manager, lashed out at on Sunday as 鈥渋ndifferent to the stock market and the economy crashing.鈥� He said Cantor Fitzgerald, the financial firm led by Lutnick before he joined the Trump administration, stood to profit because of bond investments.
On Monday, Ackman apologized for his criticism but reiterated his concerns about Trump鈥檚 tariffs.
鈥淚 am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs," he wrote on X.
Top White House economic adviser Kevin Hassett told Fox News Channel's 鈥淔ox & Friends鈥� that Ackman should 鈥渆ase off the rhetoric a little bit.鈥�
He insisted that other countries, not the United States, are 鈥済oing to bear the brunt of the tariffs.鈥�
Billionaire , a top adviser to Trump on overhauling the federal government, expressed skepticism about tariffs over the weekend. Musk has said that tariffs would drive up costs for Tesla, his electric automaker.
鈥淚 hope it is agreed that both Europe and the United States should move ideally in my view to a zero tariff situation, effectively creating a free trade zone between Europe and North America,鈥� Musk said in .
He added, 鈥淭hat certainly has been my advice to the president.鈥�
Navarro later told Fox News' 鈥淪unday Morning Futures鈥� that Musk 鈥渄oesn鈥檛 understand鈥� the situation.
鈥淗e sells cars,鈥� Navarro said. 鈥淭hat鈥檚 what he does.鈥� He added that, 鈥淗e鈥檚 simply protecting his own interests as any business person would do.鈥�
___ Associated Press writer Mari Yamaguchi contributed from Tokyo.
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Chris Megerian And Josh Boak, The Associated Press
